TMI Blog2004 (1) TMI 133X X X X Extracts X X X X X X X X Extracts X X X X ..... ue of other optional items such as metallic paint, central locking system, tinted glass, air-conditioner, Audio system, etc., as DM 11,040/- on the basis of the price list of Mercedez Benz, Germany released on 2nd January, 1993. Accordingly, the car inclusive of the optional items was assessed as Rs. 9,07,300/- and the fair value of the car cover was taken as Rs. 700/- and the appellant was asked to pay customs duty of Rs. 10,00,507/- in foreign currency and clear the car. 2. The appellant claimed assessment on a lower price of DM 32,964/- (F.O.B.) stating that the purchase price of the car was only Dirhams 83,100/- because this model of car was discontinued from 1993. She also submitted a copy of a letter from Mercedez Benz to M/s. Garga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case of Eicher Tractors Ltd. v. C.C., Mumbai - 2000 (122) E.L.T. 321 (S.C.) in support of his arguments for acceptance of the transaction value. He also cites earlier decision of the Tribunal in the case of Lt. Col. Harinder Singh Bedi v. C.C., Bombay - 1996 (83) E.L.T. 206 which allows discount of 15% on manufacturer's Tourist price to arrived at manufacturer's net price. The learned D.R. supports the orders passed by the lower authorities and cites the earlier decision of the Tribunal in the case of Meera Luthra v. C.C., Bombay - 1996 (87) E.L.T. 76 which disallowed 15% discount since manufacturer's list price was used in lieu of the Car World Catalogue price. 4. After hearing both sides and perusal of case records including the cite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the car which was in her use and such personal export from Dubai to India by the appellant does not involve any sale. In other words, the actual export and import of the used car in this case is not accompanied by a sale transaction. In view of the foregoing, the invoice price which the appellant has paid for a local sale at Dubai in the year 1993 does not meet the definition of 'transaction value' in Rule 4 for the purpose of assessment of the car imported in the year 1996 after its intervening use abroad. Consequently, since there is no transaction value available for the import, the first method of valuation i.e. the Transaction Value method cannot be applied in this case. In his order, the original authority has, therefore, rightly he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot, therefore, be faulted on that count. 6. Coming to the second argument of the learned Consultant that the vehicle in question was a discontinued model and that the same was being sold at a lower price compared to the list price as evidenced by the letter from the manufacturer, we find force in the same. The aforesaid document of the Technical Committee does note that valuation of used cars poses major difficulties and the Customs has to be satisfied as to the veracity of the declared purchased price since the trade in used and second-hand goods offers greater opportunity for fraud, particularly through the use of false invoices. Therefore, the method adopted by the lower authorities for valuation of used cars based on catalogue pri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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